Podemos Proposes Social Responsibility Fund to Assist Mortgage Defaulters

The general secretary of Podemos and Minister of Social Rights, Ione Herbhas advanced that his formation will register a law in the Congress of Deputies to create a Social Responsibility Fund, with the aim of helping people who “They can’t pay a mortgage.”

This is how Belarra has advanced it in a rally held jointly by Unidas Podemos and En Comú Podem in Tarragona to support the candidate of the Catalan formation for this capital, Jordi Collado.

Alert about an “epidemic of mortgage defaults”

“We are going to register a law in Congress to create a Social Responsibility Fundso that people who can’t pay the mortgage live a little better and have a place to go, a last shelter, when they can’t afford that payment, “said the leader of the purple formation.

Otherwise, it has warned that the same thing will happen as in the previous economic crisis: “An epidemic of mortgage defaults”. A situation that, as he has pointed out, would end with “a lot of pain.”

“It is indecent that the working families of this country are seeing how their variable rate mortgage it goes up 100, 200 or 300 euros per month”, he lamented, and then added: “It is unpayable for a working family, that the main expense they have per month rises in this way.”

Bank bailout return

The objective behind this initiative, he remarked, is none other than “the banks begin to return the ransom that they still owe to the people of this country”, which has been estimated at 60,000 million euros. For this reason, having emphasized the need for banks to “nourishing” that background.

The fund proposed by the purple formation would operate in a similar way to the Deposit Guarantee Fund, directed by a commission with a majority of representatives of the public sector and to which financial institutions would have to carry out a mandatory annual contribution of 0.15% of its volume of credit, as sources from Unidas Podemos have confirmed to Servimedia.

The implementation of this initiative would entail a collection of around 1,500 million euros per year, According to calculations made by United We Can. It should also be noted that the document that will be presented by the formation led by Belarra in the Congress of Deputies will set mandatory rebates on loan installments.

In this way, the party intends to reduce the economic effects for families of the successive increases in interest rates undertaken by the European Central Bank (ECB), overcoming the voluntary scheme of the call Code of Good Practices.